Contract Receivables

12 Months Ended

Dec. 31, 2018

Contract Receivables [Abstract]

Contract Receivables

6.  Contract Receivables

Contract receivables represent the Company's unconditional rights to considerations due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months.

Recoverable costs and accrued profit not billed represent costs incurred and associated profit accrued on contracts that will become billable upon future milestones or completion of contracts. The components of contract receivables are as follows:

(in thousands)	December 31,
	2018			2017
Billed receivables	$	15,998		$	8,154
Unbilled receivables		5,506			5,980
Allowance for doubtful accounts		(427	)		(137	)
Total contract receivables, net	$	21,077		$	13,997

Management reviews collectability of receivables periodically and records an allowance for doubtful accounts to reduce our receivables to their net realizable value when it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the receivable. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, and specific identification and review of customer accounts. During the years ended December 31, 2018 and 2017, the Company recorded allowances for doubtful accounts of $294,000 and $118,000, respectively.

During January 2019, the Company invoiced $4.1 million of the unbilled amounts related to the balance at December 31, 2018.

As of  December 31, 2018, the Company had one customer that accounted for 16.8% of its consolidated contract receivables.  As of December 31, 2017, the Company had one customer that accounted for 26.7% of its consolidated contract receivables.

The activity in the allowance for doubtful accounts is as follows:

(in thousands)	As of and for the
	Years ended December 31,
	2018			2017
Beginning balance	$	137		$	17
Current year provision		294			118
Current year write-offs		-			-
Currency adjustment		(4	)		2
Ending balance	$	427		$	137